Blog template isn't visible on frontend

Hi,

I create a blog, set it to be a template (create a template in Blog Templates page). In Blog Templates->Settings " Selecting this option will allow your new users to choose between templates when they sign up for a site." is checked.

Selecting a template is visible if I'm creating new site in the wp dashboard, but isn't if I'm creating a site as non signed in user.

WP 3.9 on twntytwelve, twentyfotheen themes. Is there are any special steps to show template selection on frontend?

Michael